Federal Inquiry into Artificial Intelligence and Data Centres
The Senate Environment and Communications References Committee commenced an Inquiry into Artificial Intelligence and Data Centres in May, chaired by South Australian Senator Sarah Hanson-Young.
The Inquiry is examining the effectiveness of existing regulatory frameworks, the impacts of AI and data centres on communities, industries and the environment, and any related matters.
As AI technologies continue to expand, so too does the demand for data centres that support the storage and processing of vast amounts of digital information.
LGA recognises the economic benefits of data centres in SA but firmly believes that councils must have a role in decisions about the development of these centres in their communities. While facilities are recognised as critical infrastructure underpinning Australia's digital economy, their growth raises important questions for local government.
South Australia currently has a relatively small data centre sector, but industry interest is increasing, particularly in regional areas where access to renewable energy resources presents attractive investment opportunities.
LGA submission
LGA has identified several key areas where councils may experience both opportunities and challenges associated with AI and data centre development.
These include:
- Energy demand and electricity infrastructure
- Greenhouse gas emissions
- Water consumption and water security
- Land use planning and development assessment
- Waste management and recycling
- Community consultation and social licence
- Local infrastructure and industry impacts.
Preliminary analysis suggests current planning and regulatory frameworks may not fully address the unique impacts associated with large-scale data centres.
Potential concerns identified include:
- Significant electricity demand and pressure on energy networks.
- Increased greenhouse gas emissions where additional energy demand is not matched by renewable generation.
- High water consumption, particularly where facilities rely on potable water supplies for cooling.
- Competition for land with agricultural, residential and environmental uses.
- Noise, lighting, visual and heat impacts on nearby communities.
- Growing volumes of electronic waste and end-of-life battery disposal challenges.
- Limited opportunities for councils and communities to influence project outcomes under some assessment pathways.
LGA's draft submission will highlight the importance of ensuring councils have adequate opportunities to participate in planning and assessment processes, particularly for large-scale developments that may have long-term impacts on local infrastructure and services.
Next steps
Members are encouraged to review the Inquiry and provide a submission. Any case studies that may help inform LGA's submission can be sent to us by 21 August.
Case studies will assist LGA in advocating for planning, regulatory and investment frameworks that support innovation and economic development while ensuring local communities and environments are appropriately considered.
The deadline for submissions to the Federal Government is 1 September.
Find out more
For more information, or to discuss your feedback, please contact Anna Rogers: Climate Change Support Advisor, anna.rogers@lga.sa.gov.au.